Methods and systems for risk evaluation

ABSTRACT

Methods, systems and computer products are provided for risk evaluation. A computer may assign a risk to an object which has an object estimation-value. The computer may also receive a risk estimation-value for the risk. The computer may re-calculate the object estimation-value based on the risk estimation-value.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is related to and claims the benefit of priority under35 U.S.C. §119(e) to U.S. Provisional Patent Application No. 60/382,024,entitled “Methods and Systems for Risk Evaluation,” filed May 22, 2002,the disclosure of which is expressly incorporated herein by reference.

BACKGROUND OF THE INVENTION

I. Field of the Invention

The present invention generally relates to the field of electronic dataprocessing. More particularly, the invention relates to methods,computer program products and systems for evaluating risks, such asrisks involved in strategic planning and other types of analysis.

II. Background Information

Key-figures are used by enterprises to monitor performance of theirstrategic processes. For example, a key-figure “number of visits toprospects” might have a causal relationship to the “number of newcustomer acquisitions,” which can be used as a measure for a businessdevelopment process. In the end, the “number of new customeracquisitions” can have a direct impact on a “turnover” key-figure of theenterprise and be important to the financial results of the enterprise.

Strategic planning usually includes a projection of how the enterpriseexpects these key-figures to develop in the future. Often, a financialgoal is set and the causal relationships of the various key-figures areused to plan and control the corresponding processes that have an impacton financial results.

Various uncertainties or risks can impact outcomes or performance of aenterprise. Therefore, there is a need to evaluate uncertainties thatcome along with strategic planning. There is also a need to evaluaterisks related to other applications, such as the planning or analysisfor social, economic or political applications.

BRIEF DESCRIPTION OF THE DRAWINGS

The accompanying drawings, which are incorporated herein and constitutea part of this specification, illustrate various features and aspects ofembodiments of the invention. In the drawings:

FIG. 1 illustrates a simplified block diagram of an exemplary computersystem which may be used to implement embodiments of the presentinvention;

FIGS. 2A and 2B illustrate examples of a graphical user interface thatcan be generated by a computer, consistent with embodiments of thepresent invention;

FIG. 3 illustrates details of an implementation of an exemplary riskevaluation system, consistent with embodiments of the present invention;

FIG. 4 illustrates an exemplary memory of a risk evaluation system,consistent with embodiments of the present invention;

FIG. 5 illustrates an alternative embodiment of the present invention;

FIG. 6 illustrates an exemplary aggregation of objects in differentscore-cards, consistent with embodiments of the present invention; and

FIG. 7 illustrates a flowchart of an exemplary risk evaluation method,consistent with embodiments of the present invention.

DETAILED DESCRIPTION

Embodiments of the invention can be realized and attained by means ofthe elements and combinations disclosed herein. It is to be understoodthat the following detailed description is exemplary and explanatoryonly and is not restrictive of the embodiments of the invention.Wherever possible, the same reference numbers will be used throughoutthe drawings to refer to the same or like parts. For convenience ofexplanation, a list of references is provided prior to the claims.

In accordance with embodiments of the present invention, a riskevaluation system is provided that includes a memory for storing anassignment structure. The risk evaluation system may also include aprocessor that is programmed for assigning a risk to an object using theassignment structure. Consistent with embodiments of the invention, theobject may be related to planning or analysis, such as strategicplanning for an enterprise, as well as planning or analysis for social,economic or political determinations. Examples of an object in astrategic enterprise management context include a strategy, astrategy-element, a perspective, an objective, a target, a key-figureand a measure.

According to an embodiment of the invention, the object may have anobject estimation-value. The object estimation-value, as usedhereinafter, represents an estimate of a value that relates to one ormore specific values of the object. Specific values of the object canbe, for example, plan values, actual values, variances, target values orother calculated values. In addition, a risk, as used hereinafter, is arepresentation of a possible event that creates uncertainty for anobject estimation-value.

Consistent with an embodiment of the invention, the risk evaluationsystem may include an interface that receives a risk estimation-valuefor the risk. The risk estimation-value, as used hereinafter, relates toan estimate for the impact of the risk on the object estimation-value ofthe object. Examples of a risk estimation value include the impact ofnew competitors on turnover, the impact of demographic factors oninsurance payments, the impact of political crisis on oil price or anyother factor whose impact on the object estimation-value is uncertain.The processor of the risk evaluation system may execute programinstructions for re-calculating the object estimation-value by using therisk estimation-value.

In accordance with other embodiments of the invention, a method isprovided for risk evaluation. The method includes assigning a risk to anobject, wherein the object has an object estimation-value. Embodimentsof the method may further include receiving a risk estimation-value forthe risk and re-calculating the object estimation-value by using therisk estimation-value.

Consistent with additional embodiments of the invention a method isprovided for risk evaluation. Such a method may include providing anestimation-value for an object and assigning a risk to the object tocorrect the estimation-value.

In accordance with still additional embodiments of the invention,another method is provided for risk evaluation. As disclosed herein, themethod may include assigning a risk to an object, wherein the object isa component of a score-card and has an object estimation-value. Ascore-card may include a plurality of objects, wherein the objects haverelationships that indicate interdependencies between objects. Examplesof score-cards are “Balanced Score-Cards” such as those used inStrategic Enterprise Management to monitor the performance ofenterprises. Other examples of score-cards include score-cards tomonitor the performance of funds, score-cards to monitor reliability ofvarious car brands, and any other score-card that can be used to monitorvalues related to a specific field. Methods of the present invention mayfurther include the steps of receiving a risk estimation-value for therisk and re-calculating the object estimation-value by using the riskestimation-value.

Additional features and embodiments of the invention will be set forthin the description which follows, and in part will be apparent from thedescription or may be learned by practice of embodiments of theinvention.

FIG. 1 illustrates an exemplary computer system 999, which may be usedto implement embodiments of the present invention. Computer system 999includes a computer 900 and optionally can have a plurality of furthercomputers 901, 902 (or 90 q, with q=0 . . . Q−1, Q any number).

In the case of multiple computers, computer 900 may be connected tofurther computers 901, 902 via a computer network 990. As illustrated inFIG. 1, computer 900 may comprise a processor 910, a memory 920, a bus930, and, optionally, an input device 940 and an output device 950 (I/Odevices, user interface 960). Consistent with embodiments of theinvention, features of the invention may be implemented using a computerprogram product 100 (CPP), a program carrier 970 and/or a program signal980, collectively “program”.

With respect to computer 900, computer 901/902 may sometimes be referredto as a “remote computer.” Computer 901/902 is, for example, a server, arouter, a peer device or other common network node, and typicallycomprises many or all of the elements described relative to computer900. Hence, elements 100 and 910-980 in computer 900 also collectivelyillustrate corresponding elements 10 q and 91 q-98 q (shown for q=0) incomputers 90 q.

Computer 900 is, for example, a conventional personal computer (PC), adesktop device, a hand-held device, a multiprocessor computer, a pencomputer, a microprocessor-based or programmable consumer device, aminicomputer, a mainframe computer, a personal mobile computing device,a mobile phone, a portable or stationary personal computer, a palmtopcomputer or the like.

Processor 910 is, for example, a central processing unit (CPU), amicro-controller unit (MCU), a digital signal processor (DSP), or thelike.

Memory 920 symbolizes elements that temporarily or permanently storedata and instructions. Although memory 920 is conveniently illustratedas part of computer 900, memory function can also be implemented innetwork 990, in computers 901/902 and in processor 910 itself (e.g.,using a cache or register) or elsewhere. Memory 920 can be a read onlymemory (ROM), a random access memory (RAM), or a memory with otheraccess options. Memory 920 may be physically implemented bycomputer-readable media, such as, for example: (a) magnetic media, suchas a hard disk, a floppy disk or other magnetic disk, a tape, or acassette tape; (b) optical media, such as an optical disk (e.g., aCD-ROM, a digital versatile disk (DVD)); (c) semiconductor media, suchas DRAM, SRAM, EPROM, EEPROM, memory stick, or by any other media, suchas paper.

Optionally, memory 920 is distributed across different media. Also,portions of memory 920 can be removable or non-removable. For readingfrom media and for writing to media, computer 900 may use devices wellknown in the art such as, for example, disk drives, tape drives, etc.

Memory 920 stores support modules such as, for example, a basic inputoutput system (BIOS), an operating system (OS), a program library, acompiler, an interpreter, and/or a text-processing tool. Support modulesare commercially available and can be installed on computer 900 by thoseof skill in the art. For simplicity, these modules are not illustrated.

CPP 100 may comprise program instructions and—optionally—data that causeprocessor 910 to execute method steps of embodiments of the presentinvention. Exemplary method steps are explained with more detail below.In other words, CPP 100 may define the operation of computer 900 and itsinteraction in network system 999. For example and without the intentionto be limiting, CPP 100 can be available as source code in anyprogramming language, and as object code (“binary code”) in a compiledform. Persons of skill in the art can use CPP 100 in connection with anyof the above-noted support modules (e.g., a compiler, an interpreterand/or an operating system).

Although CPP 100 is illustrated as being stored in memory 920, CPP 100can be located elsewhere. CPP 100 can also be embodied in carrier 970.

Carrier 970 is illustrated outside computer 900. For communicating CPP100 to computer 900, carrier 970 is conveniently inserted into inputdevice 940. Carrier 970 is implemented as any computer readable medium,such as the types of medium explained above (cf. memory 920). Generally,carrier 970 is an article of manufacture comprising a computer readablemedium having computer readable program code means embodied therein forexecuting the method of the present invention. Further, program signal980 can also embody computer program 100. Signal 980 travels on network990 to computer 900.

CPP 100, program carrier 970, and program signal 980 have beenconveniently described in connection with computer 900. Optionally,program carrier 971/972 (not shown) or program signal 981/982 can embodycomputer program product (CPP) 101/102 to be executed by processor911/912 (not shown) in computers 901/902, respectively.

Input device 940 symbolizes a device that provides data and instructionsfor processing by computer 900. For example, device 940 is a keyboard, apointing device (e.g., a mouse, a trackball, a cursor direction keys), amicrophone, a joystick, a game pad, a scanner and/or a disk drive.Although the examples are devices with human interaction, device 940 canalso operate without human interaction, such as a wireless receiver(e.g., with satellite dish or terrestrial antenna), a sensor (e.g., athermometer) and/or a counter (e.g., goods counter in a factory). Inputdevice 940 can serve to read carrier 970.

Output device 950 symbolizes a device that presents instructions anddata that have been processed. For example, a monitor or a display (suchas a cathode ray tube (CRT)), a flat panel display, a liquid crystaldisplay (LCD), a speaker, a printer, a plotter and/or a vibration alertdevice. Similar as above, output device 950 communicates with the user,but it can also communicate with further computers.

Input device 940 and output device 950 can be combined into a singledevice. Alternatively, either device 940 or 950 can be providedoptionally.

Bus 930 and network 990 provide logical and physical connections byconveying instruction and data signals. While connections insidecomputer 900 are conveniently referred to as “bus 930,” connectionsbetween computers 900-902 are referred to as “network 990.” Optionally,network 990 comprises gateways being computers that specialize in datatransmission and protocol conversion.

Devices 940 and 950 are coupled to computer 900 by bus 930 (asillustrated in FIG. 1) or by network 990 (optional). While the signalsinside computer 900 are mostly electrical signals, the signals innetwork may be electrical, magnetic, optical and/or wireless (radio)signals.

Networking environments (as network 990) are commonplace in offices,enterprise-wide computer networks, intranets and the Internet (i.e.,World Wide Web). The physical distance between a remote computer andcomputer 900 is not important. Network 990 may be implemented throughany combination of wired and/or wireless network(s). To name a fewnetwork implementations, network 990 may be, for example, a local areanetwork (LAN), a wide area network (WAN), a public switched telephonenetwork (PSTN), an Integrated Services Digital Network (ISDN), aninfra-red (IR) link, a radio link, such as Universal MobileTelecommunications System (UMTS), a Global System for MobileCommunication (GSM), a Code Division Multiple Access (CDMA) network,and/or a satellite link.

Various transmission protocols and data formats may be used such as, forexample, transmission control protocol/internet protocol (TCP/IP), hypertext transfer protocol (HTTP), secure HTTP, wireless applicationprotocol, unique resource locator (URL), a unique resource identifier(URI), hyper text markup language (HTML), extensible markup language(XML), extensible hyper text markup language (XHTML), wirelessapplication markup language (WML), Standard Generalized Markup Language(SGML), etc.

Interfaces coupled between the elements are also well known in the art.For simplicity, such interfaces are not illustrated. An interface canbe, for example, a serial port interface, a parallel port interface, agame port, a universal serial bus (USB) interface, an internal orexternal modem, a video adapter, and/or a sound card.

Computer(s) and program(s) are closely related. As used hereinafter,phrases, such as “the computer provides” and “the program provides,” areconvenient abbreviations to express actions by a computer that iscontrolled by a program.

FIGS. 2A and 2B illustrate examples of a graphical user interface (GUI)955 that may be generated by a computer 900 (cf. FIG. 1), which isoperated according to embodiments of the present invention. For example,GUI 955 is visualized for a user via output device 950 (cf. FIG. 1) attwo different time points T1 (cf. FIG. 2A) and T2 (cf. FIG. 2B). T2 isafter T1.

The following scenario will be referred to as an example of anembodiment of the present invention. However, this scenario is not meantto limit the scope of the claimed embodiments of the invention.

At T1, GUI 955 includes layout-components 955-1 to 955-7. GUI 955 may bepart of an application to plan and track objectives of an enterprise. Inthe example, GUI 955 shows a portion of a score-card. In thisembodiment, layout-component 955-1 (objective) shows one objective ofthe enterprise: “OBJECTIVE: GROW CUSTOMER BASE.” The enterprise can usemultiple key-figures to plan and track this objective. One key-figurethat is assigned to the objective is shown in layout-component 955-2(turnover): “TURNOVER IN USD.” An increase in turnover can be anindicator for customer base growth. Layout-components 955-3 (risk 1) and955-4 (risk 2) show two risks that are assigned to turnover 955-2because they may have impact on the enterprises turnover: “RISK1:EXCHANGE RATE USD-EURO” and “RISK 2: NEW COMPETITOR.” Fluctuations incurrency exchange rates can heavily impact the turnover in theenterprise's home currency. New competitors entering the market can gainmarket share from the enterprise and also account for reduced turnover.

Consistent with embodiments of the invention, layout-component 955-7(table) may be a table that includes cells to present values to andreceive values from the user.

In the example of FIGS. 2A and 2B, the first row of table 955-7 refersto the turnover in USD. Column A includes actual values. The actualvalue of the turnover in USD is “122” (e.g., for a given period, such asthe first two quarters of the business year). Column P includes thecorresponding plan value, which is for example “125.” Column T includesa target value for the turnover (e.g., for the full business year). Thecolumn EV shows the (latest) estimation-value “340” for thecorresponding target value “360.”

In the second row of table 955-7, column EV includes an estimation-value“−20” for risk 1. This indicates to the user that the impact of thecurrency exchange rate risk is currently assumed to reduce the targetvalue “360” of the turnover by “20.”

At T2, the situation has changed for the enterprise. For example, a newcompetitor unexpectedly entered the market. The new competitor usesaggressive pricing to gain market share. The sales manager of theenterprise expects to lose customer orders to the new competitor.Therefore, the sales manager can enter an estimation-value “−30” incolumn EV to value risk 2. The computer re-calculates theestimation-value of the turnover by reducing the amount to “310”according to the new risk 2 estimation-value.

In the example of FIG. 2B, layout-component 955-6 (risk status)indicates (!) to the user that the sum of all risks assigned to theturnover exceeded a given threshold value (e.g., 10%). Any other visualor audio representation of the risk status can be used (e.g., bulletswith different colors, icons, sound signals, etc.). At T1, the riskstatus 955-6 is still empty. Preferably, the risk status of each measureis consolidated and results in a risk status (layout component 955-5)for target 955-1 itself. Therefore, at T2, risk status 955-5 is changed(e.g., from empty to “!”).

Preferably, the estimation-values of risks 955-3, 955-4 have the sameunit of measure (e.g., USD) as the turnover key-FIG. 955-2.

Consistent with embodiments of the invention, the GUIs of FIGS. 2A and2B are exemplary and any type of GUI can be used. For example, the GUIcan include further layout-components to represent score-cards, one ormore strategies, strategy-elements, perspectives, targets, objectives,risks, key-figures, measures and/or any other layout-component that canbe relevant for strategic enterprise management. The layout-componentscan have relationships defined by assignments, such as:perspective-to-score-card assignments, objective-to-perspectiveassignments, key-figure-to-objective assignments, measure-to objectiveassignments, measure-to-target assignments and risk-to-key-figureassignments. Any other assignment that supports strategic enterprisemanagement may be defined. Values in table 955-7 can use otherlayout-components, such as input fields, output fields, rows, columns,etc. with appropriate navigation tools, such as scroll bars, data setselectors and drop-down menus.

The explanatory scenario refers to a business environment where oneembodiment of the present invention is used to monitor the performanceof an enterprise and facilitate decision making. Other scenariosrelating to other environments, such as decision support in politics,conflict situations, buying/purchasing, medical treatment, etc., may beimplemented by using alternative embodiments of the present invention.

FIG. 3 illustrates details of an implementation of a risk evaluationsystem, consistent with embodiments of the present invention. Hardwarecomponents of computer 900 (cf. FIGS. 2A and 2B) are illustrated bydashed lines/frames. Software components are illustrated by solidlines/frames.

As explained earlier in FIG. 1, input device 940 can be connected tomemory 920 via bus 930. Memory 920 may store at least one predefinedrisk 121 and at least one predefined object 111. Alternatively, risksand objects can be stored on different storage devices of computersystem 999 (cf. FIG. 1). Other possibilities of storage arrangements canbe used, such as those known to individuals skilled in the art, and thusare within the scope of the invention. In one example, object 111 is akey-figure and has object estimation-value 111-EV. In the example ofFIGS. 2A and 2B, estimation-value 111-EV of object 111 corresponds tothe value “340” in column EV of table 955-7 for turnover 955-2. Object111 can also be a strategy, a strategy-element, a perspective, anobjective, a target, a measure and/or any other object that is used instrategic enterprise management. In other words, embodiments of thepresent invention are not dependent on the meaning of any of thelayout-components in FIGS. 2A and 2B.

When assigning 410 risk 121 to object 111, memory 920 may provide astorage location for risk estimation-value 121-EV as part of object 111.Risk estimation-value 121-EV relates to risk 121.

Referring back to the example of FIGS. 2A and 2B, the estimation-valueof risk 2 (955-4) corresponds to risk estimation-value 121-EV. Variousarrangements may be provided for receiving 420 an estimative-value forthe risk. For example, a sales manager may enter a value (e.g., “−30”)for risk estimation-value 121-EV via input device 940 (e.g., akeyboard). Other arrangements are also possible for receiving a riskestimation-value. In one embodiment of the present invention, memory 920receives the value via bus 930. In another embodiment, the value can bereceived from any computer or input device in computer system 999 (cf.FIG. 1). This includes also any computer that might be linked tocomputer 900 via the Internet or any other network like WAN or LANnetworks.

Computer 900 may re-calculate 430 object estimation-value 111-EV bytaking into account risk estimation-value 121-EV. Different approachesor algorithms may be utilized to re-calculate the objectestimation-value depending on the application. In one implementation,risk estimation-value 121-EV is added to object estimation-value 111-EV.In other implementations, other algorithms can be used, such asaveraging, weighted averaging and/or factoring the estimation-values.

By making the impact of risks on key-figures apparent, embodiments ofthe invention allow the impact of risks on strategic key-figures of anenterprise to be considered in the strategic planning process of theenterprise.

FIG. 4 illustrates an exemplary memory of a risk evaluation system,consistent with embodiments of the invention.

In one embodiment of the present invention, object 111 is a component ofscore-card 110. Score-card 110 can have further objects, such askey-figures, measures, objectives, perspectives, targets or any otherobject relevant to strategic enterprise management. In one example,further object 112 is an objective. Objects in score-card 110 can havehierarchical relationships with each other. In the example, object 111(key-figure) is a child of further object 112 (objective). This isindicated by parent-child relation 150. Other combinations forrelationships are possible, such as perspective-to-score-cardrelationships, objective-to-perspective relationships,key-figure-to-objective relationships, measure-to-objectiverelationships, risk-to-measure relationships and/or risk-to-key-figurerelationships. Any other relationship that supports strategic enterprisemanagement may be defined.

As known by those skilled in the art, hierarchical relationships can bestored in a hierarchy data structure. One embodiment of the hierarchydata structure can be a database table having parent-child data sets.Another embodiment can be a markup language file, such as an XML orXHTML file, where a tag hierarchy reflects the hierarchicalrelationships. For example, a tag representing further object 112(parent) has a further tag representing object 111 (child).

Each object 111, 112 has its estimation-value 111-EV, 112-EV,respectively. Further, each object 111, 112 has a unit of measure111-UM, 112-UM, respectively. Preferably, the unit of measure (e.g.,“Mil USD” for millions of United States dollars) is used for any value(e.g., actual turnover, planned turnover, target value,estimation-value, etc) that is assigned to the corresponding object. Inother words, estimation-values for a risk use the unit of measure of theobject where the risk is assigned to. If needed, conversion algorithmsmay be used to convert the estimation-value for a risk (stored in oneunit of measure format) into the unit of measure of a correspondingobject. In the example, risks 121, 123 are assigned A1, A2 to object111. The corresponding risk estimation-values 121-EV, 123-EV use unit ofmeasure 111-UM of object 111. Risk 123 is also assigned A3 to furtherobject 112. Therefore, corresponding risk estimation-value 123-EV′ usesunit of measure 112-UM of further object 112, which can be differentfrom unit of measure 111-UM. By measuring risks in the same units ofmeasure as the objects where they are assigned to, the impact of a riskon the object becomes apparent. Referring back to the example of FIGS.2A and 2B, a sales manager may be more likely in a position to estimatein USD how risk 2 (new competitor) will affect the turnover than toestimate an abstract probability value in percentages, wherein theprobability value is primarily not related to the correspondingkey-figure (turnover).

Preferably, risk 121 is a component of risk-catalogue 120.Risk-catalogue 120 can store further risks 122, 123, etc. Each risk inrisk-catalogue can be assigned to each object in score care 110 and eachobject can have one or more risk assigned to it.

Optionally, each object 111, 112 has a risk status 11′-RS, 112-RS,respectively. The risk status of an object provides an aggregate view onthe total impact of all risks assigned to the object. For example, riskstatus 111-RS of object 111 takes into account risk estimation-values121-EV, 123-EV. In the example of FIGS. 2A and 2B, a visualization(e.g., “!”) of risk status 111-RS is presented to the user vialayout-component 955-6. For example, in one implementation of anembodiment of the present invention, risk status 111-RS is calculated440 by comparing the total impact of risks assigned to object 111 with apredefined threshold value. In another implementation, risk status111-RS is calculated 440 by using predefined rules. The predefinedthreshold values or rules are stored in rule-set 190. For example, rulesin rule-set 190 can be dynamic by varying the threshold value dependingon a certain base value, such as plan value, actual value or targetvalue (cf. FIGS. 2A and 2B) or any other value that is relevant for theobject and might be calculated by using the aforementioned values.Rule-set 190 can also include rules that describe the impact ofrisk-status 111-RS on further risk-status 112-RS of further object 112.Computer 900 calculates 450 further risk-status 112-RS by taking intoaccount risk status 111-R. Preferably, when calculating 450 furtherrisk-status 112-RS, the total impact of risks (e.g., 123-EV′) assignedto further object 112 is also considered.

The risk status of an object provides an aggregate view on the impact ofall risks assigned to the object. By using relationships between variousobjects, the risk status of one object can impact the risk status of afurther object, when the further object is a parent of the object. Thisprovides a consistent overview of the impact of all risks on all objectswithin score-card 110.

FIG. 5 illustrates an alternative embodiment of the present invention.As illustrated in FIG. 5, a score-card 110, such as a balancedscore-card (BSC), may be provided by a strategic enterprise managementcomponent 710, such as the SEM BSC solution of SAP AG (Walldorf,Germany), and a risk catalogue 120 (RC) may be provided by a riskmanagement component 720, such as the SEM Risk Builder of SAP AG. Forexample, values of BSC objects can be derived 731 from business data(BD) 130 stored in a data warehouse 730, such as the BusinessInformation Warehouse (BW) of SAP AG. The values of the BSC objects canbe stored 713 in the data warehouse 730. By combining 712 a strategicenterprise management component 710 with a risk management component720, the user is provided with a solution to better evaluateuncertainties related to risks that have impact on plan values for anyobject, such as strategy elements, perspectives, objectives, targets,key-figures, measures, etc.

FIG. 6 illustrates an exemplary aggregation of objects 111, 111′ into asimilar object 111,″ wherein the objects 111, 111′ and the similarobject 111″ can belong to different score-cards 110, 110′, 110,″respectively.

In one implementation, computer 900 (cf. FIG. 1) provides multiplescore-cards 110, 110′, 110″ in memory 920. In another implementation,the score-cards 110, 110′, 110″ can be distributed over multiple storagedevices of computer system 999. For example, the functionality ofscore-cards 110′, 110″ is substantially equivalent to the functionalityof score-card 110. In another implementation, the different score-cardscan be stored in different storage locations of computer system 999 (cf.FIG. 1).

For example, each score-card 110, 110′, 110″ stores at least one object111, 111′, 111,″ respectively. Objects 111, 111′, 111″ are similar.“Similar,” as used hereinafter, means that the objects are of the sametype (e.g., strategy, strategy-element, perspective, objective, target,measure, key-figure) and refer to the same instance of this type (e.g.,key-figure turnover). Preferably, units of measure 111-UM, 111-UM′,111-UM″ of the objects are equal. Each object 111, 111′, 111″ has acorresponding object estimation-value 111-EV, 111-EV′, 111-EV.″

In one embodiment of the present invention, computer 900 aggregates 470estimation-values of objects 111, 111′ (e.g., object estimation-value111-EV and indexed object estimation-value 111-EV′) into correspondingobject estimation-values of similar object 111″ (e.g., correspondingobject estimation-value 111-EV″) by using rule-set 190. That is,estimation-values of objects 111, 111′ are processed according to rulesdefined in rule-set 190 and the result is written to the correspondingobject estimation-value of object 111.″ For example, correspondingobject estimation-value 111-EV″ in score-card 110″ is the result ofadding object estimation-value 111-EV and indexed first 111-EV′ ofscore-cards 110, 110.′ Another rule of rule-set 190 may calculatecorresponding object estimation-value 111-EV″ as the average or weightedaverage of object estimation-value 111-EV and indexed objectestimation-value 111-EV′. As appreciated by those skilled in the art,further rules of rule-set 190 can be defined as they are required by anenterprise for strategic enterprise management. Further, multipleestimation-values can be aggregated in aggregation step 470substantially simultaneously.

By aggregating objects of different score-cards into an object ofanother score-card, one embodiment of the present invention allows amanager to get a consolidated view of the strategic plan of anenterprise from a single score-card (e.g., score-card 111″).

Risk evaluation methods may be executed by a computer, such as computer900 (cf. FIG. 1) running CPP 100. In one embodiment of the presentinvention, CPP 100 has a plurality of instructions that cause processor910 (cf. FIG. 1) of computer 900 to execute the steps of a method (suchas a risk evaluation method 400—cf. FIG. 7). CPP 100 can be stored ondata carrier 970 (cf. FIG. 1) or carried by signal 980 (cf. FIG. 1).

FIG. 7 illustrates steps of an exemplary risk evaluation method 400,consistent with embodiments of the present invention. Method 400includes the steps of assigning 410, receiving 420 and re-calculating430. Optionally, method 400 may further include the steps of calculating440, calculating 450, providing 460 and/or aggregating 470. Examples ofthese steps are now explained in detail.

In the assigning step 410, risk 121 (cf. FIG. 3) is assigned to object111 (cf. FIG. 3). Assignments can be defined by those skilled in the artusing, for example, assignment structures, such as an assignmentdatabase table or hierarchical data structures as used in markuplanguage documents (e.g., XML-files, XHTML-files, etc.). In oneimplementation, risk 121 and object 111 are predefined. In anotherimplementation, risk 121 and object 111 may be created in the assigningstep. Object 111 can be a strategy, a strategy-element, a measure, anobjective, a target, a key-figure and/or any other object that ismeaningful in strategic enterprise management.

Object 111 has object estimation-value 111-EV (cf. FIG. 3). In apreferred implementation, object 111 is a component of score-card 110(cf. FIG. 4) and risk 121 is a component of risk-catalogue 120 (cf. FIG.4).

In the receiving 420 step, risk estimation-value (cf. FIG. 4) 121-EV forrisk 121 is received. For example, a user can enter riskestimation-value 121-EV via an input-device, such as input-device 940(cf. FIG. 3). In another embodiment of the present invention, riskestimation-value 121-EV can be received from a computer (e.g. computer901, 902 cf. FIG. 1). Preferably, object 111 has a unit of measure111-UM (cf. FIG. 4) and risk estimation-value 121-EV is received usingthe unit of measure 111-UM of object 111.

In the re-calculating 430 step, object estimation-value 111-EV isre-calculated by using risk estimation-value 121-EV. For example, amathematical operation is applied to the object estimation-value and therisk estimation-value. Examples of mathematical operations include:adding, subtracting, dividing, multiplying, averaging, weightedaveraging, linear regression and/or other mathematical operations thatmay be meaningful or useful for calculating the estimation value.

In accordance with an embodiment of the invention, optional steps 440,450 may be provided. In optional steps 440, 450, score-card 110 providesat least one further object 112 that has a hierarchical relationship 150(cf. FIG. 4) to object 111 so that object 111 is a child of furtherobject 112. Further object 112 can be a strategy, a strategy-element, aperspective, an objective, a target, a measure, a key-figure and/or anyother object that is meaningful in strategic enterprise management.

In the calculating 440 step, risk-status 111-RS is calculated for object111 by using rule-set 190. For example, in one implementation of anembodiment of the present invention, risk status 111-RS is calculated440 by comparing the total impact of risks assigned to object 111 with apredefined threshold value. In another implementation, risk status111-RS is calculated 440 by using predefined rules. The predefinedthreshold values or rules are stored in rule-set 190. For example, rulesin rule-set 190 can be dynamic by varying the threshold value dependingon a certain base value, such as a plan value, an actual value or atarget value (cf. FIGS. 2A and 2B) or any other value that is relevantfor the object and might be calculated by using the aforementionedvalues.

In the calculating 450 step, further risk-status 112-RS for furtherobject 112 is calculated by using risk-status 111-RS of object 111.Rule-set 190 can also include rules that describe the impact ofrisk-status 111-RS on further risk-status 112-RS of further object 112.For example, a risk-status can have various levels, such as high risk,medium risk and low risk, for indicating the importance of the risk. Onerule to describe the impact of risk-status 111-RS on further risk-status112-RS could be: the value of further risk-status 112-RS is replaced bythe value of risk-status 111-RS if risk-status 111-RS indicates a higherrisk. As will be appreciated by those skilled in the art, further rulescan be defined for risk-status propagation between objects having arelationship by taking into account an enterprises risk managementstrategy.

In accordance with another embodiment of the invention, optional steps460, 470 may be also be provided. In optional steps 460, 470,estimation-values originating from different score-cards are aggregatedinto a single score-card.

In the providing step 460, computer 900 provides at least furtherscore-card 110,′ wherein further score-card 110′ is substantiallyequivalent to score-card 110. Score-card 110′ has similar object 111′,which is similar to object 111.

In the aggregating step 470, object estimation-value 111-EV may beaggregated into corresponding object estimation-value 111-EV′ of similarobject 111′ according to rules of rule-set 190.

The invention is not limited to the particulars of the embodimentsdisclosed herein. For example, the individual features of each of thedisclosed embodiments may be combined or added to the features of otherembodiments. In addition, the steps of the disclosed methods herein maybe combined or modified without departing from the spirit of theinvention claimed herein.

Accordingly, it is intended that the specification and embodimentsdisclosed herein be considered as exemplary only, with a true scope andspirit of the invention being indicated by the following claims.

The following is a list of reference numerals used in the accompanyingdrawings. This list intended to facilitate the reader and should not beconsidered to limit the scope of the embodiments of the invention or theappended claims.

Reference Description 100 Computer Program Product 110, 110′, 110″Score-Cards 120 Risk-Catalogue 111, 111′, 111″, 112 Objects 121, 122,123 Risks xxx-UM Unit of Measure of an Object xxx-EV Estimation Value ofan Object xxx-RS Risk Status of an Object 190 Rule-Set Ax AssignmentRisk-Object 150 Assignment Object-Object 400, 500 Method 4xx, 5xx MethodSteps 955 Graphical User Interface 955-x Layout Components 999 ComputerSystem 900, 901, 902 Computers 910, 911, 912 Processors 920, 921, 922Memories 930 Bus 940 Input Device 950 Output Device 960 User Interface970 Program Carrier (computer readable device) 980 Program Signal

1-20. (canceled)
 21. A method for risk evaluation in a strategicenterprise management system comprising: assigning a risk to an object,wherein the object is a component of a score-card and has an objectestimation-value; receiving a risk estimation-value for the risk; andre-calculating the object estimation-value by using the riskestimation-value.
 22. The method of claim 21, wherein the object isselected from the group comprising a strategy, a strategy-element, aperspective, an objective, a target, a key-figure and a measure. 23-34.(canceled)
 35. A risk evaluation system used in strategic enterprisemanagement comprising: means for assigning a risk to an object, whereinthe object is a component of a score-card and has an objectestimation-value; means for receiving a risk estimation-value for therisk; and means for re-calculating the object estimation-value by usingthe risk estimation-value.
 36. The system of claim 35, furthercomprising: means for providing at least a further score-card, whereinthe further score-card is substantially equivalent to the score-card andhas a similar object, which is similar to the object of the score-card;and means for aggregating the object estimation-value into acorresponding object estimation-value of the similar object.
 37. Thesystem of claim 35, wherein the object is selected from the groupcomprising a strategy, a strategy-element, a perspective, an objective,a target, a key-figure and a measure.
 38. The system of claim 35,wherein the score-card provides at least one further object that has ahierarchical relationship with the object so that the object is a childof the further object.
 39. The system of claim 38, wherein the furtherobject is selected from the group comprising a strategy, astrategy-element, a perspective, an objective, a target, a key-figureand a measure.
 40. The system of claim 35, further comprising:calculating a risk-status for the object by using a rule-set.
 41. Thesystem of claim 40, further comprising: calculating a furtherrisk-status for the further object by using the rule-set and therisk-status of the object.
 42. A risk evaluation system used instrategic enterprise management comprising: a memory storing anassignment structure; a processor to execute program instructions forassigning a risk to an object using the assignment structure, whereinthe object has an object estimation-value; an interface for receiving arisk estimation-value for the risk; and the processor to execute programinstructions for re-calculating the object estimation-value by using therisk estimation-value.
 43. The system of claim 42, wherein the object isa component of a score-card stored by the memory.
 44. The system ofclaim 43, wherein the memory stores at least a further score-card, thatis substantially equivalent to the score-card and has a similar object,which is similar to the object of the score-card, and wherein theprocessor executes program instructions to aggregate the objectestimation-value into a corresponding object estimation-value of thesimilar object.
 45. The system of claim 42, wherein the object isselected from the group comprising a strategy, a strategy-element, aperspective, an objective, a target, a key-figure and a measure.
 46. Thesystem of claim 43, wherein the memory stores a at least one furtherobject of the score-card and further stores a hierarchy data structurewhere a hierarchical relationship between the object and the furtherobject is defined so that the object is a child of the further object.47. The system of claim 46, wherein the further object is selected fromthe group comprising a strategy, a strategy-element, a perspective, anobjective, a target, a key-figure and a measure.
 48. The system of claim42, wherein the processor executes program instructions to calculate arisk-status for the object by using a rule-set.
 49. The system of claim48, wherein the processor executes program instructions to calculate afurther risk-status for the further object by using the rule-set and therisk-status of the object.
 50. The system of claim 48 or 49, wherein therule-set comprises rules selected from the group comprising adding,subtracting, averaging, weighted averaging and comparing to a thresholdvalue.
 51. The system of claim 42, wherein the object has a unit ofmeasure and the risk estimation-value is received using the unit ofmeasure of the object. 52-64. (canceled)
 65. A computer program productfor risk evaluation in strategic enterprise management embodied by acomputer readable medium, the computer program product comprisinginstructions to cause a processor of a computer to execute the followingsteps: assigning a risk to an object, wherein the object is a componentof a score-card and has an object estimation-value; receiving a riskestimation-value for the risk; and re-calculating the objectestimation-value by using the risk estimation-value.
 66. The computerprogram product of claim 65, wherein the object is selected from thegroup comprising a strategy, a strategy-element, a perspective, anobjective, a target, a key-figure and a measure.